Two Ways: Weak Dollar Pumps Up Oil
Strengthen your portfolio in good times and bad.
Crude oil is up a second consecutive day, helped in part by a weaker dollar. Arab nations, along with China, Russia, Japan, and France, were reported to be secretly discussing a move to price the commodity in a basket of other currencies including the yen, euro, and gold, according to Robert Fisk of The Independent.
Although Saudi Arabia's central bank governor appears to have denied the report, prices still climbed to above $71.50 a barrel this morning while the dollar fell to its lowest levels in two weeks versus the euro.
See Minyan Jim Quinn's Four Reasons Oil Will Lead in the Next Commodity Boom.
From the Bull Pen: If you're looking for oil exposure, consider Schlumberger (SLB). The stock may soon challenge its recent highs near $63. A sell stop can be set below recent lows, near $56.
From the Bear Cave: Rising fuel costs will considerably weigh on a stock like Delta Air Lines (DAL). Those playing it can set a tight buy stop above its 20 day moving average (currently $8.70).
A Quick Check Around the World
Asian trading closed with the Nikkei 0.18%, India 0.55%, Hang Seng 1.87%, Shanghai 0.90%, and Taiwan 1.32%.
Across the pond, we see the FTSE 1.54%, CAC 1.49%, DAX 1.68%
As of 8:10 a.m. EST, S&P Futures are trading +8.75 to 1045.50 and Nasdaq futures are +15.00 to 1689.00.
A Look at Commodities
Over in commodities, crude oil is +1.12 to 71.53 while gold is +9.50 to 1027.70 this morning. Silver is +0.46 to 16.99 and copper +0.375 to 2.7645.
The dollar index is -0.3050 to 76.5300.
Light day on the radar. But click here for the rest of the week's events.
Good luck, Minyans!
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